Nordic poultry group Scandi Standard has acquired Finnish premium chicken group Huttulan Kutto for EUR10m (US$11.3m), including the assumption of EUR5m in debt.
Scandi Standard said that the purchase price could rise to EUR13m over the next five years, depending on the attainment of certain performance milestones.
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Huttulan started operations last year in a newly built facility. The company has developed a premium concept based on Finnish chicken which it sells to retail and foodservice customers. Since February 2015, Huttulan has also sold limited quantities of the Swedish Kronfågel brand to its customers in Finland.
The business employs 42 people and currently processes approximately 1.4m chicken per annum. The site has the capacity to process up to 10m chicken per annum.
"I am very pleased to announce this acquisition. Finland is a very attractive market for Scandi Standard which shares many of the features of quality, health and welfare of chicken with the other Nordic countries. This acquisition brings to Scandi Standard an established team in Finland with a new business and a new processing facility. It is a good first, small step into this promising market," commented Leif Bergvall Hansen, CEO of Scandi Standard.
The acquisition is not expected to have a material impact on Scandi Standard’s consolidated sales and earnings in 2015.
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